What Makes Credit Card Networks Such Durable Money Machines
These dominant companies should be on every investor's radar.
What Makes Credit Card Networks Such Durable Money Machines
Overview
On a global level, Visa (NYSE: V) and Mastercard (NYSE: MA) are the two dominant credit card networks. They have virtually ubiquitous acceptance, with a presence in more than 200 countries and territories. They process trillions of dollars in payment volume each quarter. And billions of their cards are used worldwide.
Their industry positions have resulted in tremendous profits. During the past five years, Visa's quarterly net income margin averaged 51.2%, while Mastercard's was slightly lower at 45.4%. When it comes to generating earnings, there is no issue.
Details
What makes these companies such durable money machines?
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.
